BASF and SINOPEC sign agreement on feasibility study for the expansion of the Nanjing site
* German Chancellor Angela Merkel and Chinese Premier Wen Jiabao support joint project
BASF and SINOPEC today (September 14, 2006) signed an agreement on the preparation of a technical and commercial feasibility study for the planned expansion of their joint Verbund site in Nanjing, China.
Mr. Chen Tonghai, Chairman of China Petroleum & Chemical Corporation (SINOPEC Corp.), Dr. Jürgen Hambrecht, Chairman of the Board of Executive Directors of BASF Aktiengesellschaft, and Dr. Martin Brudermüller, BASF Board member responsible for Asia Pacific, signed the agreement in Berlin in the presence of German Chancellor Angela Merkel and Chinese Premier Wen Jiabao.
The agreement advances BASF and SINOPEC’s earlier commitment, announced on July 10, 2006, to invest well above $500 million expanding their production facilities at their 50-50 joint venture in Nanjing – BASF-YPC Co. Ltd. The companies plan to expand the capacity of the steam cracker and invest in additional downstream plants to further strengthen synergies at the site. The new activities are expected to come on stream in 2009.
Both companies also agreed to integrate their second joint operation Yangzi-BASF Styrenics (YBS) in Nanjing into BASF-YPC Co. Ltd. to increase efficiency and make full use of existing synergies.
Note to Editors:
Photos of the signing ceremony can be downloaded at corporate.basf.com/photos.
BASF-YPC Co. Ltd. is a 50-50 joint venture between BASF and SINOPEC, founded in 2000, with a total investment of $2.9 billion in the first phase. The ground breaking for the site, located in Nanjing, Jiangsu Province, took place on September 28, 2001. BASF-YPC Co. Ltd. successfully started commercial production at a steam cracker as well as nine downstream plants in China in June 2005. These plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and minimize environmental impact. The 220-hectare site produces 1.7 million metric tons of high-quality chemicals and polymers per year for the rapidly growing Chinese market. The site also has a gas-fired power plant and an international port on a tributary of the Yangtze River to ensure optimum energy supply and logistics.
BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF’s intelligent system solutions and high-value products help its customers to be more successful. BASF develops new technologies and uses them to open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. BASF has approximately 94,000 employees and posted sales of more than €42.7 billion in 2005. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.
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